NVIDIA records a decline in the gaming segment and prepares for price cuts

The company’s gaming segment reported a 44% decline in revenue from the previous quarter

NVIDIA today released its preliminary results for the second fiscal quarter of 2023, showing A significant decline in its operations is focused on the gaming segment. At the same time that shareholders should be disappointed, the company brought good news to consumers in the form of promises that Price cuts on your GPUs are inevitable And it should happen soon.

According to the company, its earnings were in the second fiscal semester $6.7 billionvalue 21% more than the projected $8.1 billion. There was also a drop in the company’s profit margin, which It went from 65.1% to 43.7%Much of which is responsible for the gaming segment that had a 44% lower performance compared to the previous quarter (ie 33% less compared to the previous year).

A positive result is slightly offset by a 1% quarterly growth On the results of NVIDIA data centers This is 59% increase in its activities in the automotive segment. It is predicted that the company will invest more and more Diversification of activities in the near futureEspecially given the predictions that its gaming business will continue to make losses in the coming quarters.

NVIDIA considers it necessary to reduce prices

In a message sent to shareholders, the company’s CEO Jensen Huang said that The results below the expectations are the result of the transformations that have taken place in the market in the last quarter. “As we expect macroeconomic conditions affecting sales to continue, we have taken steps with our gaming partners to adjust pricing and inventory channels.“, said the executive.

The manufacturer also warned that its future activities may be Long-term liabilities are affected He was forced to do so during the pandemic and the global semiconductor crisis. The company doesn’t mention it in its report, but much of the situation it’s experiencing is Reflecting the fall in prices of cryptoassetsWhich caused the demand for their GPUs to drop.

The situation NVIDIA is going through has already had a direct impact on partners like EVGA, which announced this Monday $1000 off your RTX 3090Ti. The prediction is that the company’s problems may accompany the launch of the new RTX 40 line (Ada Lovelace), and more details about what it expects in the future should be revealed. Full disclosure of your resultsSomething is expected by the 23rd of this month.

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Source: Tom’s Hardware

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